Legal Series: Don’t Get Caught Off Guard: HR’s Guide to Pay Transparency Laws

This article is part of an ongoing legal series designed to provide insight and practical guidance on current and emerging workplace compliance issues. These insights shared by lawyers are based on their interpretation of existing regulations and proposed changes, and intended for informational purposes, not to be regarded as legal advice.

Many employers continue to make decisions about pay based on opaque factors and whether the employee negotiated for their salary. Several US states have begun adopting pay transparency laws that apply on top of labor laws. Those laws vary by state but require employers to disclose information about pay in job postings and on request, typically in the form of salary ranges tied to positions.

What Are Pay Transparency Laws?

Broadly, pay transparency laws require employers to disclose information about how much they pay for particular positions. These laws aim to provide information to help job applicants and employees understand their options.

Which States Have Pay Transparency Laws?

As 2025 draws to a close, many states have already adopted pay transparency laws, including:

• California,
• Colorado,
• Connecticut,
• D.C.,
• Delaware (effective September 2027),
• Hawaii, 
• Illinois,
• Maryland,
• Massachusetts,
• Minnesota,
• Nevada,
• New Jersey,
• New York,
• Rhode Island,
• Vermont, and
• Washington.

Several locations in Ohio also have local rules that require pay transparency, but there isn’t a statewide law in effect.

Other states have considered or are considering enacting pay transparency rules, including several states where state legislatures have introduced pay transparency laws but have not yet passed them. Over time, more states are likely to adopt pay transparency laws.

Common Pay Transparency Requirements

Certain requirements recur among pay transparency laws, including requiring employers to provide:

• A salary range in job postings—California, Colorado, D.C., Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New York, Vermont, Washington;
• Information about job benefits in job postings—Colorado, D.C., Illinois, Maryland, Minnesota, New Jersey, Washington;
• A salary range to all applicants during the application process, at least before a job offer—Connecticut, Illinois, Nevada, Rhode Island; and
• Salary ranges to current employees during internal opportunities or upon request: Colorado, Illinois, Massachusetts.

While these pay transparency laws have some overlap, employers with employees in multiple states may need to comply with several state laws at the same time.

Variations in Pay Transparency Requirements

Some states vary their requirements, such as:

• Colorado—expansive, requires pay range, benefits, and application instructions in every job posting, including internal job notices;
• Illinois—splits into two regimes that vary by employer size, requiring more of employers with 15 or more employees; and
• Nevada—requires employers to provide pay only after an applicant completes an interview.

State laws also apply differently by employer size.

Variations in Pay Transparency Laws’ Applicability

Some states set no minimum employer size, including:

• Colorado,
• Connecticut,
• D.C.,
• Maryland,
• Nevada, and
• Rhode Island.

If you have even one employee in one of these states, you must abide by its pay transparency laws.

Other states limit the reach of these laws to employers with more employees, including:

• California,
• Hawaii,
• Illinois,
• Massachusetts,
• Minnesota,
• New Jersey,
• New York,
• Vermont, and
• Washington.

Illinois is a special case. Illinois law requires employers to provide a salary range upon request to all employees, regardless of size, but exempts employers with fewer than 15 employees from some rules.

Steps to Ensure Pay Transparency Compliance

Ensuring pay transparency compliance begins with identifying what laws apply to you and what laws could apply to your business. Ensure you know where your business currently has employees and begin with the policies in those states.

Adopt a Policy Aligning with Multiple States’ Requirements

Once you know which states’ laws might apply, create an official, written policy adopting what the law requires. Specifically, identify which specific disclosure rules each state has and adopt a policy that follows the law that requires employers to do the most. 

Consider adopting a policy that addresses the elements these different state laws touch on, even if your specific state doesn’t. Your policy may address, for example:

• What to include in job postings,
• Processes related to internal job opportunities, and
• A tracking system for salary ranges.

Adopting a forward-looking policy may save you time revisiting and revising the policy in the future as states enact new laws and modify existing ones. Consider consulting an employment attorney or HR consulting firm when you draft the policy, and ensure that you train managers on what the new policy means in concrete terms.

Audit Existing Job Postings and Hiring Processes

Once you know what laws may apply, audit any job postings that you currently have, especially if the law changes while they are posted. Check each posting to ensure that it complies with the specific laws in the state or states that apply to the employer or the position. 

Also audit internal hiring or promotion processes. If necessary, change policies to adopt rules requiring employers to provide information to internal and external applicants. 

Audit Existing Compensation Differences

Consider auditing your current, actual pay structure as well. By identifying tasks and skills related to positions and categorizing them, you can compare pay, anticipate potential pay discrepancies, and address them yourself before they become an issue.

Internal communications will play an important part of the remediation process. Deciding how to address the discrepancies is crucial and transparency is key. Consult with your legal counsel to determine how much information to communicate to employees.  

Create Written Standards and a Violation Response Plan

Although pay transparency laws don’t typically require employers to disclose every detail they rely on in the hiring process, many require salary ranges. Internally, determining salary ranges often means evaluating specific, job-related factors to explore differences in compensation. If you don’t already have a policy that identifies these factors, consider adopting one. 

While everyone hopes to stay compliant with the law, slip-ups happen. Create a plan for how your company will respond upon learning about a potential violation. Address, for example: 

• Who should respond;
• A response timeline, based on deadlines in the state’s law; and 
• What internal communications, if any, you will send related to the violation.

Many states offer employers a grace period to make corrections, so being ready with a plan may enable you to avoid penalties.

Pay Transparency Compliance

Pay transparency laws are a recent development that appears poised to continue developing. States are likely to continue to adopt and refine their pay transparency laws over time. Outsolve can help you keep track of changes and manage them when they come.

Outsolve offers resources to help entrepreneurs and HR professionals navigate legal changes. Reach out to learn more.